Wednesday, November 23, 2005

Condo Saga

There's been a lot of drama since I last reported on my condo update. My last post on the condo pretty much stated that it was a done deal. Well I'm actually still debating believe it or not. I've flip flopped a couple of times already. Here goes, on Monday I told them that I was going to proceed with the deal. I signed the paper work and submitted a check for a 10% of the purchase price. I slept over it and the next morning, I decided that I didn't want to go for it. I guess I got cold feet at the last minute. So I got my lawyer to tell them the news. It was not going to be a problem. They would void the contract and return the check. After all this, I thought that was the end of it. I was actually a bit relieved. Well today, I got a call from my lawyer to see if I would reconsider. The sales rep was willing to lower my down payment to 5% from 10%. This was not going to influence my decision since I was planning on putting 20-30% as a total down payment. But it would be nice to have less money tied up for a period of almost two years. The big kicker was that the price for the same exact units have now appreciated by ~ 30% over a period of four months. This should really be a no brainer! The decision I make on Monday will be my final decision! I promise!

This condo thing has really distracted me from the market. Wow, I'm really impressed by this rally and the market has pretty much priced in an end to the Fed rate hikes. When the Fed minutes came out on Tuesday that was the green light to put money aggressively back to work. Since I may end up only using half of the cash raised for the condo down payment; I'm going to plow the rest back into the market. I'm going to do some research over the weekend...


At November 28, 2005, Blogger Mathieu said...

Are you buying the condo for investment or for living in it?

If it's investment you should be wary of hidden costs that you might have forgotten (or more likely underestimated)in an optimistic cash flow projection (assessments, repairs, etc.).

Real Estate is probably the best investment you can make (I wish I could afford to invest in it) but the picture is not as rosy as one may think, there are some drawbacks too.

Nice blog btw

At November 28, 2005, Blogger Money Turtle said...

This is my new home... so yeah, I'm planning on living there for a bit. The recent price appreciation just gives me a bit of protection in case I need to sell for whatever reason.

Thanks for the comment about the blog. I just wish I had more time to post more stuff on the stock market.


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